Question regarding effects of earnings on financial aid

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Dentalist

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If I took a year off and worked between undergrad and professional school, would my earnings during that year significantly affect the financial aid for professional school? For instance, would I be expected to pay more out of my pocket and less federal loans? (even if I used my earnings to pay off the undergrad debts? - meaning I wouldn't have much money in my pocket) Also, what is the maximum amount of federal loans I can take out for professional school? I would appreciate your input. Thank you!

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tinkerbelle

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Your earnings shouldn't affect the amount of federal loans you will receive. I worked for a year, and I still qualified for $8500 in subsidized loans and $30k in unsibsidized loans. I don't know if the loan amount is different for dental school... this $38,500 is the loan amount for med schools.

Your earnings will only hurt you in terms of grants from your particular school.

Unless your undergrad debt consists of unsibsizided loans, I don't see why you would want to pay it off.
 

smc927

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When I went back to school (undergrad) after working full-time for a while I asked the same question. I was told that even if my income lowered the amount of financial aid I could receive I could file for a change of status. I had been laid off from my job. The financial aid office told me I had to let a certain time period go by before I could file (6 weeks maybe? I don't remember) then I could file for a change in my financial status.

I'm guessing the same would apply to medical school. If your income from the previous year meant you couldn't get as much aid perhaps they could change that since you would no longer be working.
 

joe6102

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Well I took a couple of years off, and earned a decent salary. On my FAFSA, my EFC went from zero to over 8500. I haven't received my award, so I'm not yet sure how this will affect it, but I'm assuming I will get 8500 less in Stafford loans. Even with my salary, there's no way I could have saved up that much in one year, so I'm not happy about it.
 

sanford_w/o_son

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what if one payed off student loans (from undergrad) during the year before starting professional school? do schools typically deduct this from your income in deciding eligibility for grants? can this offset some of the penalty for making a substantial income?
 
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